welcome to the program. the headlines today from around the globe. the coalition fade as they reject the radical demands to tear up the bailout deal. the german banks' net profits in the first quarter coming in lower than expected. and watch out, gm. toyota aims to reclaim its position as the world's top automaker as the first quarter blows past estimates. disney is the happiest place on earth. the second quarter earnings beat the analyst and it has big news

about its new box office smash, "the avengers." and welcome to the show. we have a slew of ceos joining us on the show today. in about five minutes we'll speak with the ceo plus the ceo of prudential joins us. that's at quarter past the hour. and right after that, we will interview the ceo of ebay after the paypal unit signs a joint venn very to bring its epayment system to japan. >> just to remind you where we stand, we'reweight eweighted to upside. we were lower earlier on during the session. this is after being near fresh 2012 lows. the ftse 100 closed.

down 100 points, 1.78%. the xetra dax down 2% yesterday. and we see the cac 40 down 2.78% yesterday. we rebounded slightly around 17 points. the ftse 100 as well. focus on bond yields for bunds during the session. we saw 1.533%, 1.54%. we've got an auction today. keep your eyes on spreads across spain. spanish debt heading back toward the 6%, this morning at 5.96%. the italian yields. 10-year gilt yields as we.

do down near record lows. christine. >> mostly a negative session so far because of concerns of greece and how they could scrap their bailout deals or some riff income the market. over in japan, down 1.5%. we have some earnings coming up, most notably from toyota, closing flat in earnings after the bell. they jumped $5.43 billion. we'll have analysis on the company's earnings later on in the show in a couple of minutes. elsewhere in greater china, the markets are a little on the defensi defensive. china market down 1.7%. there was a correction in the markets but most notably a possible delay in the five yearly congress adding to market jitters in shanghai. hong kong down 0.8%. we have oil majors slumping. elsewhere in the south korean market, down.

gold price is down, 0.9% and the sensex may be traded to the upside but the indian rupee was sold off on concerns about risk aversion as the investors cut their exposure, of course, to risky assets. >> greece's leader will attempt to form a coalition government today after other main parties rejected his cause to scrap the terms of the country's bailout. the ceo's ratings agency fitch says they will not lead to break-up. they say that germany would not let that happen because if deutsche marks were reintroduced it would depreciate excessively among other currencies. joining us. how -- is that a risk and what

does it mean for investors right now? >> i think this is something that we've talked about for a long time and many times. i thinks you'll see this when elections take place. what does that mean? it's about the fire wall that has attempted to be built between greece and italy and spain, because, really, if we had an exit of greece to a certain extent, i think europe is ready for it provided fierce are contained in italy and spain, and i think that's really the test. now, clearly if greece left, that would probably be the end of 2013 event, but markets were clearly trying to anticipate what happens on greece, spain,

portugal, and ireland before that. >> okay. stay with us. we plan to get through that. they swung to a net loss due to a rise in taxes in russia, but the firm has stuck to its full year guidants. we're joining by the ceo of carsberg. mr. rasmussen, thanks for joining us. talk to us about russia. is this going to be an ongoing problem. >> the underlying dynamics in russia is quite positive. the macroeconomy quite positive. what you see coming through in our numbers would be the destocking after we had the tax increase in january. if you look at our asian region,

very strong performance and russia primarily being impacted by restocking. we invest quite a bit in the marketing in the first half because we have the big event, the world champion football championship coming up in poland and ukraine. >> how will that feed in? >> can you -- what do you mean by that? >> what is that going to do for the bottom line, that tournament? >> it's -- i cannot put a number on it. it's definitely very positive, and it's not only short term in terms of volume list but it's what it does to the brand. it's a very positive thing because you have so many people and spectator viewing those matches being played during that tournament. so it's not only short term but long term building brand equity. but at the same time if you have all the right countries qualify

and you have a bright sunny june it can lift the bottom line. >> mr. buhl rasmussen, this is christine in asia. do you see any plans for exposure to help see your business else where? >> first of all, let me state we're very happy about what's happening in our current business out there. so good growth across a lot of our markets. cambodia, india, china, our brand in china does very well, laos. yes, as i've said many times, if you look at acquisition, certainly asia for us would be the key focus area. we want to acquire in growth regions and asia would be the best fit. so we always kind of looking for opportunities and what could make sense for karlsberg.

>> and speaking, what kind of brewer would fit into your portfolio as far as acquisitions would be concerns? >> as you know, i cannot be specific to that question. but it would have to have a specific fit with our footprint. we're already in a lot of places out there. if you see the tra tee jik fit, it can strengthen or business or brand portfolio and we'll look at it. >> yes. this is virgieny in russia. when you look at the business on the one hand, on the other hand the real wage increase that's been quite strong, what is your outlook in terms of pricing for your activities in that market? >> first of all, after a couple of years of market decline, and when i say market decline, that's the market because the market has been growing year after year, but the volume has

been in decline. we believe the first year will be the first year for a couple of years where we see the market probably coming back to growth at some point during the year in volume which means maybe for the year flattish markets. we also see some positive pricing and also some positive mix in central consumers trading up. so we should benefit from pricing and mix. but part of the pricing is to offset the increase with the duty being put in place in january of this year. >> final question, what's your forecast for margins going out through the year? >> we don't have a specific forecast for mar jirngs but we have set the region by market. what i've set for the company, for the group carlsberg, we assume it's quite similar to what we had last year. what we have said in the

meantime is we expect the market to be in the 26% to 29% mar jib. >> jorgen buhl rasmussen, thank you. we'll take our first break. the trading numbers hit the table. we'll be back in just a few moments. moments.

welcome back. well, earnings with toyota has hit the profit accelerator as it surges back into the global sales race after a year of setbacks following the earthquake disaster. the car's top carmaker made a $1.5 billion profit in the latest quarter from a year earlier that beat the street estimates. and toyota expects stronger sales to double its profit in the year ahead, though a rising yen remains a key risk. if you take a look at toyota shares, they're up by a third since last november, outperforming rivals like nissan, honda, ford, and gm. closing flat over in tokyo. we'll break down the numbers with an analyst at 10:40 cet.

ross. >> absolutely. i want to bring you up to speed on what's going on with the currency markets this morning. the euro/dollar is trying to see if it get as break below 1.28. the euro's low against the yen as well. euro/sterling, again, analysts are talking here about going below 80 on it. you can now get 1.20 apparently if you're going to the foreign exchange desk. we're now getting news out of prudential. the trading update says asia new profit up to 260 million pounds. u.s. has maintained the focus on the value there of 214 million pounds. in the uk they're talking about a increase and they're reemphasizing their strong sheet with 3.8 billion pounds this morning. this is the latest trading

update, of course, from the uk. the stock rebounding slightly on the first key one figures. net inflows, 2.1 billion new business profit in the uk. 62 million pounds. joining us exclusively on cnbc with more of an update. tee gem, good morning to you. >> good morning. >> you've talked increasingly about how asia is going to be your focus, so what more -- how much more of the business is going to come out of this region in the next two years? >> we're very pleased with the results as you said. it's our primary measure of growth, not sales. we'll really driving the business based on new business profits. 22% 22% year on year it's broad

performance. so all the fundamentals of that group which are emerging in the middle class in asia with high demand for health and protection products and we have a distribution both for our agency network and banking partners to reach those emerging middle classes, leaves us in a very good position. asia is now comfortable. you gave the numbers, 260 million in asia, 62 in the uk, but gives you a sense of where we're headed. we're going up 20%. >> it makes sense because you've used this phrase before. it makes sense. you've got -- it makes sense to buy that. >> well, we're very pleased with the performance of thailand. it's doubled. unfortunately we've doubled to 2% which is a significantly less than we like to have with any

market thailand's a very attractive market. we've made no secret of our ambitions there, but you will understand i would not like to comment on any specific situation. we are very good if you take singapore out. singapore is now larger than many countries. we have u of b. >> i'm looking at -- i'm looking at the insurance business and think you don't want them to get it. it looks like a nice fit for you guys. >> i didn't think i'd get out of here with the three letters. we have made no secret of being friends with asia. it's quality growth. all resales are premiums which people pay every month in their policies and that's very good for our business. so we -- how can i say this? we only have one with asia which

is to grow our distribution, and we are always looking for the distribution. >> christine? john, this is christine here in asia. i'm glad my region is a sweet spot for you. how are you cracking the china market? i'm curious. >> you mean mainland china? look. it's a long-term ambition of ours to be a significant player in china. we are active in more than 38 cities now. for us, it's a long-term growth option. that's how we look at it. we need to learn about china. we need to learn how to operate and be successful in china. and as the market grows and opens up, we think that the long-term trends are very positive. but the aging of the population is going to create opportunity. we need to develop consumption means that there will need to be

better health and protection for chinese consumers so they feel comfortable saving less and consuming more. so as time passes, we will grow in china, but, you know, one must recognize that today our numbers in china are not material, but as you know, the sum total, referring insurance companies in china has a 5% market share. so we are well positioned within that, but still scratching the surface. >> scratching the surface. how are you growing your distribution network in china? are you finding it difficult to find the right people to represent you in the country? >> it's the same everywhere. look. there's a lot of demand for agents, and we do what we do everywhere, which is to really invest in the long term. what we want is professional agents, not people who dress to sell part-time. and our techniques to identify the right people, train them and

then activate them are well established, and we have been able to transfer to china our experience from other asian markets. but it is a long term. it's a long haul. a long-term challenge, but we're best positioned to meet the challenge. >> just -- your pay as matter of record, 4.7 million pounds, the pay package slightly down from last year. we're in a shareholder spring. andrew months no longer at aviva, your competitor as well as other competitors. what's your view of the increased shareholder activism and what that means for ceos and people in your position. >> yes. you've heard me say we're servants to the shareholder. that's a phrase i've used at the time. we run our companies on before of the shareholders who own them. so it's very important that

shar shareholders are listened to. it has to lead to performance. i'm pleased that prudential, that if you have invested a dollar or a pound in prudential, three years ago it would be worth two pounds today, we thing that's a very good delivery. it's significant headwinds if you look at the environment. so i think that their performance, remuneration should follow, and that's our fundamental belief. >> and i read that you've hired savos to look for square footage. does that mean you're going to leave your building in the uk? >> we need to find a new home in the uk. i'm a great believer in delegation. i may have some skills, but -- >> i just wondering whether that means -- i should. read because you're looking for a new building that that means you're going to keep your headquarters in the uk.

you might move it. >> we've always said the same thing. we like london. that is really what is driving those conversations, not a view that we have in london. >> are you -- >> actually i'm slightly more optimistic than the last time we spoke. march 21st was a key date. there was some progress made with the brownberry prospect. we're not quite there yet. it's progress. on the u.s. equivalent, there are conversations. i would say i'm becoming cautiously optimistic. >> thanks for joining us. just to point out, we didn't get into that but we reiterate that. christine. >> japanese companies should soon be able to make their online payments by paypal.

they will team up in a 50/50 joint venture to bring the u.s. ecommerce system to japan. it will bring in roughly $12 million. the unit will be called paypal japan. soft bank surged after it. 0.3% earlier on. joining us for an interview john donohoe, president of ebay joins us. mr. donohoe, thank you for joining us. your joint venture aims to change the japanese payment system, but as far as i know, the japanese market loves to pay by cash. can you really change this mindset? >> well, yes, christine, we thing we can now with a simple card reader. all people have to do is plug this into their smartphone and they can now receive credit

cards, something that was prohibitively expensive for them to do. >> who exactly are you targeting with this new system? >> well, with pay pall we're targeting all consumers, small businesses offline and online. in large businessing it will make up 70% of the jobs in japan and the small commerce, which is the small businesses across the country that will now be able to accept credit card payments as well as online payments. >> what will this mean for your ebay business overall with this system now in place? >> well, this allows us to grow our business in japan. you know, paypal is the leading payment's way to be online and in mobile payments and in many can countries around the world, we have over 10 million active

users. this year we'll process over $20 million in volume. this allows us to target on gaming leadership in japan which you know is the second largest ecommerce market in the world. we're very excited about it and we think the skills of softbank combined with pay pall's product gives us an enormous leg up in the market. >> when you think of the potential of it, five to seven years for mobile payments on a global basis and the transformation it can do to your business, can you give us an idea of target market share or other measures of evaluation that you're thinking of? >> well, mobile's having an obvious impact. we're leaders. ebay's mobile app is going to do

over $8 billion of volume this year. that's almost 15% of ebay's global volume, and it's growing at a rate where i think it's going to crack 20% of the global volume easily over the next couple of years. paypal will do over $70 million this year. it's grown 50 time over the last four years and what it's showing is that people want to shop and pay with their mobile device. and our mobile capabilities are leading edge and we're at the very front of helping consumers access shopping and paying, whether they want to do it online, do it on their mobile device, or increasingly do it on their mobile device while in an offline store. so this trend is absolutely accelerating and i think it's still in its early days. >> mr. donohoe, what are the charges going to be like to use the smartphone. can you give us an idea? >> well, today, if you're a

small business and you want to receive credit cards in japan, it costs 100,000 yen, you have to pay monthly fees, and you get charged somewhere between 5% and 8% on the transactions. with paypal you have to pay not 100,000 yen but 1,200 yen to get the paypal card reader, there are no monthly fees, no hidden charges, and you're charged a straight 5%. so we think this is very economical, significantly lower cost than any alternative and will allow the small businesses across japan to now accept paypal and accept digital and card payments. >> mr. donohoe, before we let you go, you know, we would be remiss if we didn't ask you what's happening, of course, at yahoo! with the new ceo and his discrepancies with his background. he used to work for you as the head of paypal.

any comments there? >> you know, scott did a very good job at paypal. he's a good leader. as a fellow ceo, i'm very supportive of scott and i hope the situation resolves itself in a way that everyone can get back to work. >> mr. donohoe, thank you very much for appearing on "worldwide exchange." john donohoe, president and ceo of ebay, talking to us lierchlt ross. we're going to be in athens where alexis will attempt to form a coalition government. all the details after the break. i think he's facing something of a big change. a big change. ♪ ♪ i can do anything ♪ i can do anything today ♪ i can go anywhere ♪ i can go anywhere today ♪ la la la la la la la [ male announcer ] dow solutions help millions of people

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this is "worldwide exchan " exchange." they demand to tear up the bailout deal. greece also weighs on the german bank profit. coming in lower than expected. and watch out, gm. toyota aims to reclaim its position as the world's top automaker as fourth quarter profits blow past estimates. and disney's the happiest place on earth as they bead forecasts and the company has

big news about its new box office smash, "the avengers." yeah, we'll be talking about disney a little bit later as the happiest place on earth after those numbers. we just got comments coming out of italy. banks lending to financial companies stalled in march. up 2.2% on the year. it was 2.10% in february. this is from the bank in italy. private sector profits up 2.4% from half a percent in february. this comes as we continue focus, of course, on what's going on in greece. the radical left leader alexis tsipras. carolyn, what's the time line

looking like for us here? >> reporter: we don't expect him to set his differences aside with both the leader and the new democracy party. mr. tsipras will be meeting the leaders of both parties later on tonight. that's at 6:00 and 7:00 local time. but, again, we don't expect a fruitful outcome of those discussions. i want to reiterate what mr. tsipras has been saying. he told both parties, i'm not going to form a coalition with you as long as you don't agree to scrap the bailout agreement together. they were both quite rational saying we can't agree to it. that threatens greece's member in the eurozone. again, this warning was repeated by ecb's when he spoke to hundreds. but he said there's no motion for agreement. that's if grease wants to stay in the eurozone. so, ross, i think the international community has now pretty much come to terms with the fact that this country is

heading for a second route of elections, most likely happening on june 17th. but the trouble is we don't know if the outcome of the new round of elections will be any more conclusive and whether it will actually produce a stable government which will follow through with the austerity. ross. >> all right, carolyn. we'll leave it there. for now that's the latest in athens. we'll keep an eye on that. we have a slew of earnings. they say their exposure to peripheral debt is manageable. the germany company lanxess has had a rise.

the stock is trading high. hi, patricia. >> hi. the stock is expected to trade hire after looking what they said today. i thought, oh, my god, did i get that so wrong because it was trading first higher and then really lower and now it came back up because the market is clever enough, i guess, to look beyond the only numbers of profit below expectations. what commerz bank has to say. the capital situation and also the ratio has been very good. actually better than expected. up 11.3%. ahead of plan, ahead of the target of the eba. also the loan loss provisions were less than expected. trading profits were above expectations. also no credit concerns. the first quarter was very easy environmental for them to raise any kind of capital, which is

good. they gave us details on ltro money, they took part in both of them and they took about 16.2 billion. and there's no exposure to greek debt. so all in all, it's actually really quite good news and at the moment they're celebrating. lanxess as you mentioned, i would say from quarter to quarter to quarter they're beating expectations and they're not lowballing on their outlook either but they seem to be able to have the pricing market. earlier we asks the ceo about it and here's what he had to say. >> we want to come out this year with an ebita growth versus the record year of 2011.

>> also the numbers coming through allianz. e.on is an interesting one. must stronger than expected. rising. but at the same time the debts are also up. back to you. other earnings out today, ing up. they'll continue to weigh on its performance. the bailout bank will go to the european commission to renegotiation its position. natixis will release its earnings today, and dexia reported a net quarter loss. the bank has said it's divested 3 billion euros. it's still the rump of the bank that's trading. stephane is looking for both of

those in paris. hi, stephane. >> hi, ross. regarding dexia, the bank wasn't profitable in the first quarter. that's not surprising. a charge on its participation in austria. 150 million euros nearly. the bank says its short-term funding requirement was at 61 billion euros at the oepd testify quarter. it's down from 88 billion euros at the end of the last. the bank has given a date on its sovereign debt exposure in europe. 11.7 billion euros to the debts in italy and nearly 1.6 billion to the portuguese debts. the italian amount is quite significant, hence the market reachlkts d r reaction. dexia has not announced its position. they said recently that dexia

would need to improve its solvency ratio. according to some experts, dexia would need 7 billion euros in cap tachita capital. christine, over to you. >> stephane, thank you very much for that. over in china, tracey chang has more details. >> they will shorten the license's aproovlg process for foreign institutional investors. now, among the steps the security's regulators wants to take easing application document requirements, speeding up approv approvals, lowers their lower minimum qualification level, allowing more into the program to expand its scope as well as clarifying the income tax policies. now, since the beginning of this year, the state administration

and foreign exchange has approved more than $3.5 billion in owe tas for 28 overseas institutions and the china's securities regulatory commission says it's granted licences to more than five investment firms paving the way to invest. back over to you, christine. >> thank you very much for that. now let's get some reaction from virginie. will they be attracting capital? >> i think as part of the long-term picture of the deregulation of the capital account in china, we've seen many different parts of the puzzle, the enlargement of the ban, the usage of the batter currency, the fact that japan has quite a significant part. clearly this is a plan that will

evolve in the next five to seven years to try in my view make the rmb a currency. so this is a step along the way. >> all of this happening when china's growth is clearly moderating. what are your prospects of china's growth despite the weakness overseas? >> with the first quarter at 8.1%, thirn i think some people disappointed. i thought it was a good number in light of what's going on around the world. i was particularly encouraged by the support of, you know, imports that china is giving to the rheest of the world. i think although chinese growth is slowing down because she's now the second largest world economy, her impact on the global economy continues to be larger and larger. therefore, those imports are very important. for the second quarter, i would expect something quite similar

to the first quarter. maybe slightly higher, maybe slightly lower. and something better in the second half of the year. clearly what happens in europe is important in terms of trade, but we do not except a very strong contribution from exports for the year. instead i think it's measured pace in terms of putting back selected infrastructure programs as well in the road, airports, as well as the public housing program, continuing support the consumer, which, as you know, at least 15% annual growth in basic wages. >> all right. virginie, we'll take a pause. still to come, sit still fun to stay at the ymca? more importantly, how important is it to earn the rights? we'll have the results of the corporate legal battle when we come back.

well, toyota has hit the profit sector following the earthquake disaster. we have all the details for us live from tokyo.

>> hello, christine. despite the nikkei plunging to a three-month low, they held firm thanks to those expectations for strong earnings. after the bell, the automaker said that their net profit grew nearly five-fold. the yen's depreciation through the end of march helped underpin profit that beat market expectations. sales grew 23% and operating profits soared more than five-fold. the impact of production cuts related to japan's quake disaster and flooding in thailand wore off mostly by the end of last year. and this enabled toyota to increase output from january. and domestic ecocar subsidies have helped the sales of the pleaous and hybrids. with toyota auto sales up 12% and chinese sales soaring 6.8% in april, the firm expects the uptrend to continue. toyota sees net profit more than doubling and operating profit tripling in the current fiscal

year. the company plans to pump out 100,000 hybrids annually in the u.s. and china. as for potential downsize, toyota's recent currency market trends and rising resource prices plus european debt crisis as the biggest risk factors. back to you, christine. >> tlank you very much for that. joining us for more reaction, executive director for asia-pacific for j.d. power and associates. thank you for joining us. is this the year that toyota is going to make a big comeback? >> well, think this will definitely be a definite defining year for toyota. there's a turnaround story in place. we're all hearing about it. the good news is that toyota has kind of plugged in some of those quality issues that has plagued the company for the past several years.

also very favorable market trends. especially markets like china or markets like japan what are the home turf. or in markets like asean. one is the internal operative measures which toyota took some time back with together a favorable market situation. the question that remains is that even other manufacturers today have done a lot about improving product quality. also the market in terms of the market conditions is -- >> so that's a lot of catching up to do? >> has a lot of catching up to do, especially when it comes to things like future. so they have -- they clearly are offering quality. you know, a good car should be in terms of quality and

durability and reliability. when it comes to does the car truly delight its consumers -- >> that's something they need to look at. the outlook, of course, is based on the assumption that dollar yen remains at 80 to 105. how do you see toyota mitigating the headwinds. do they have measures in place to cut costs where it's necessary to kind of balance out other risks? >> i think at this point in time toyota would look at very strong cost-cutting measures. they really do not have at this point in time an option that they would move their entire manufacturing to some other location. so clearly in the short term, the only strategy to mitigate that risk comes from cost-cutting. i think that's where it would be for the short term. >> this is virginie in the studio. i have two questions. first, what are your thoughts of the second half of the year 2013 for the company. clearly we're seeing the rebound from all those negative news that we had, but on a sustainable basis.

and the second one is your scope for the u.s. market. i believe the average age of cars in the u.s. now is 11 years, which is actually quite old. do you think we're about to see a very strong demand continuing over the next 12 to 18 months, or do you thing given the fiscal issues, et cetera, in the u.s., that actually is going to be short-lived that demands trends? >> yes. that's what i was sharing earlier. toyota clearly needs to come up with a very strong pipeline in terms of new products not just for brands like lexus before for the brand toyota etc. and frankly speaking, at this point in time, while one does he hear of, you know, the electric cars being launched, these are niche products.

you need to come in with more stronger products for the mass volume segment, which are the mainstay for toyota. >> and very quickly, mohit, do you think gm has every reason to be afraid that toyota will take over? >> i think gm should be afraid. but the fact also, i was saying, is that being number one, it's a very -- i don't think it's really a coveted place as far as the passenger car industry is concerned. it's more important to be profitable than to be the biggest seller. that's clearly the case. >> point taken. thank you for your insight. good talking with you. that was mohit arora from jd powers and associates. so is this a peace offering ahead of talks? rhie-young lim has the details.

rhie. >> it wasn't exactly made on the tech giant. it comes after a california judge basically ordered the two to reduce their claims ahead of their trial in july. after filing in a district court it almost dropped half of it patent lawsuits. that includes technology such as its status bar, touchscreen shielding and even the iphone's styling body. they decided to drop five of the cases but do take this with a pinch of salt. both companies are still stepping up their vocal complaints against each other. according to a lawyer, apping wasn't so willing to just let claims slip away. in fact, apple says all of the dropped cases could be folded into a new bench trial or into a separate lawsuit. so looks like we'll be still seeing them in court. back over to you. >> rhie, thank you very much for that. rhie-young lim over in south korea. in the meantime a california

judge has dismissed a lawsuit with proview against apple. i sold the ipad name for less than what it was worth. apple said it bought ownership of the trademark in different countries from proview. hmm. and news, italian tax police are apparently searching the headquarters. this is the third largest bank. we'll keep your eyes on that. let's get back with virginie. we were talking with scott wapner in the united states, despite what's taking place in the europe, he's 70% of global equities and 30% is on u.s. indices. he thinks it won't fall sharply this year. what do you make of that position in stocks? >> well, i think the u.s. is clearly in a better shape than our europe overall, and think this is why you should utake

advantage of this air pocket we're seeing. equities are cheap compared to bonds and think, you know, one of the things that i find attractive in the u.s. is the whole manufacturing. we've talked about it here for quite a while here with the competitive of the u.s. being very strong. we have a lot of around the shared gas and the car industry. there's a lot -- all this said, let's be measured because we have with the fiscal issues and the election a little bit of potential for volatility. so, again, there's those broad brush trends but at the end of the day it comes back to the stocks and think there's definitely selected opportunity between now and june in the global equity markets. >> good to have you on today. >> thank you. >> virginie maissoneuve.

we still have a whole hour to go which means it's time for jackie to join us. good morning, jacks. >> good morning, ross, good morning christine. it's found stay at the ymca. they tried to prevent him from reclaiming right to the hit songs like ymca. the u.s. copy right law is letting them regain control of songs that they signed away 35 years after their release. the ruling has huge implications starting next year. artists like bob dylan, bruce springsteen, they could reclaim their songs to license how they please. my question to you, ross, mr. willis was the motorcycle cop in the village people lineup there. if you could dress as one of those guys, who would you be? >> probably the cop. there's something about the indian with all the feathers. are you having a party that we're coming to?

>> yeah. show some -- do the ymca for us. >> all right. we'll leave the ymca discussion there for the moment. but still to come on the show, the stakes are high in the business of gambling, but how is the world's las vegas strip fending off destinations like macaw? we're going to talk about the destinations. stay with us. ♪ why do you whisper, green grass? ♪

[ all ] shh! ♪ why tell the trees what ain't so? ♪ [ male announcer ] dow solutions use vibration reduction technology to help reduce track noise so trains move quieter through urban areas all over the world. together, the elements of science and the human element can solve anything. [ all ] shh! [ male announcer ] solutionism. the new optimism. a living, breathing intelligence helping business, do more business. in here, opportunities are created and protected. gonna need more wool! demand is instantly recognized and securely acted on across the company. around the world. turning a new trend, into a global phenomenon. it's the at&t network -- securing a world of new opportunities. ♪ >> good morning and

welcome to the show. disney, the happiest place on earth. they have great news on the box office smash "the avengers." a big rise in new asian business. the ceo tells this show exclusively they're in position for long-term growth for the region. watch out. toyota aims to reclaim its position as their first quarter profits blow past estimates.

good morning. great to have you here on "worldwide exchange." let's go ahead and take a look at the u.s. futures and see how we're setting up for trade on wall street at this early hour. looking like it's going to be a lower open. the dow would be lowered by 82, the nasdaq by 22 and the s&p 500 by 11. this after we saw a lower session yesterday. we were in negative territory, but we did recover more than half of our losses yesterday. the dow closing down 76 points below the 13 mark and that's a key psychological mark, posting its first five-day loss. ross, how is it looking at this point? >> hi to you. we have rebounded a little bit this morning. the ftse closed down on fresh 2012 lows. we rebounded. we started heading down another 0.4%. the dax fairly flat. a large number of earnings out of there today, but, remember, down.

the cac 40 down. the ibex in spain down 2.6%. today we have seen prisoner raf bond yields edge high as we've seen yields in safe haven countries like germany and the uk down to contract record lows. they expect greece to leave the eurozone by next year and comments made to the cnbc on the sideline. they say the political term in europe is a slow motion train wreck and the eurozone will eventually break up with two or three members expected to exit the block over the next few years. although he's still 70% in equities. that comes as alexis tsipras says they're getting more. i think the chances are fairly receding that we'll get any coalition agreement. >> well, our next guest says that the european story is resulting in u.s. bond yields

being 50-plus basis points loweren they should be. joining us for the next hour spz is george goncalvez. thanks so much for coming on. let's talk about that when we're looking at the bond picture. u.s. versus europe. what's your take on that? >> in europe it doesn't seem like a day doesn't go by where the records go lower and lower. in the u.s., it's having an affect. there's scarcity of high-quality bonds around the world, the u.s. being the biggest bond market is benefiting from the problems in europe. >> and what point do you expect to see this shift, the bond market to come back? >> we've had some soft data. so people are a little bit data about where the path is for the u.s. on the economic side. we see a lot of the negativity out of europe at least die down. it's not going to go away. we think it geengs to be an issue for quarters if not years. we'll see if it leads to what he was saying in terms of break-up.

but in the interim, there are going to be moments where you have negativity, not that much negativity, and that's where you're going to drive bond markets around the world. >> who's going to buy the u.s. treasury if the fed stops? >> the fed has been involved in our markets for -- since the financial crisis, and in one way or another, when they buy -- actually yields used to go higher and when they stop these buying programs, the yield would actually rally because there was a lack of bonds and people were short their benchmarks. now we're getting into the opposite. nink you look at 2011, the fed nearly bought 60% of the overall debt that was issued, and, you know, if they step away cold turkey, think it's going have an impact. rates go higher for people to actually have these bonds. >> george, six weeks ago we had a lot of people saying this is it. we're now seeing a tactical allocation shift out of the u.s. treasuries into the stock market and since then they've done nothing but come lower again. was there any evidence of any

tactical shift or not in your view? >> i mean i think on the margin, you probably saw some of that happening, but, you know, you've got to realize that these flows are not that big in comparison to the fear trade and the fight of quality coming out of euro. there's a lot of money chasing assets and that's really skewing the reality of what's the bond picture. >> and, look. we had some comments out . he said weak job growth, there's no accommodation that can deal with the weak job growth but he also said there's no reason to increase the rates at the moment. he's a hawkish guy so if he says there's no reason, i assume rates will anchor yields for some time. >> these true, but you have to thing about what that means and where we start from. we're already at very depressed

levels, and in order for them to go lower, and that would be the only real reason to buy here, is expecting even further lower rates and higher gains in the bond market. i think that would require a fed on hold for five to seven years some of these are starting to get to levels which are just disconnecting from fed expectations as well as economic expectations. >> george is going to stick around with us. of courses we're going to talk more about the bonds in the markets with him as well as we come up later in the hour. but still to come up on the show, we're talking disney. shrugging off the "john carter" flachlkt we have estimate on those numbers coming up at 5:45 eastern time. make sure you stick with us. a living, breathing intelligence teaching data how to do more for business. [ beeping ] in here, data knows what to do. because the network finds it and tailors it across all the right points, automating all the right actions,

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good morning and welcome back to the show. if you're just joining us, let's go ahead and check on the u.s. futures and see how we're setting up for trade on wall street as far as the global markets report. it looks like it's going to be a lower opening at this point. the nasdaq lower by nearly 20 and the s&p 500 lower by 10.5. this after we did close lower yesterday. we were in negative territory, but recovering some of the earlier losses from the morning, of course, that political uncertainty in greece, still keeping the u.s. markets on edge at this point. the dow closing 17 points before that key psychological mark of 13,000. so it's going to be interesting to see how the markets trade in

the u.s., ross. how does it look in europe? >> 7 to 3. a little bit more. there's been a bit of a volatile session. we were down and headed up and not far off the session lows. very heavy selling yesterday. the ftse 100 closed at 2012 close. down another 18 points, a third of a percent. the dax is an outperformer. germany still trying to shrug off any problems in the eurozone. the cac 40 down. the cac down over 3% over the last three sessions. the ftse 100 down two-thirds. we're continuing to keep focus on what's going on with the bond yields. very noticeable. ten-year spanish yields back up during that session. italian yields, higher over 5.5%. this con ten jency, 10-year bund, 1.534%. we're down near the record lows

that we hit yesterday. 10-year gilt yields as well down near con track and record lows as well. 10-year gilts yields 1.395%. so we continue to get disparity between the safe havens and the risk as you can see it. it's impacting on the currency market. very poor value of risk. nevertheless the euro/dollar back. the year sterling, 80.41. people are breaking below 80 for the euro against the pound. dollar yen is weak er. and aussie dollar down as well. nymex, you can see down to 96.38. if there's any upside it it is

fact that oil prices are slowly getting weaker. christine. >> well, in terms of what's happening over here in asia, a really negative session because of those concerns over in dprooes about the possibility that they could scrap its say that operating profit jumped over $5.3 billion. issuing an upbeat outlook. elsewhwe had concerns. it added to market jitters, pulling this market slower. the hang seng is up 0.8% as well. oil prices saw some of the oil price slip. the kospi, eurozone triggering 0.9% lower. australian market, we had a fall in oil and gold and copper prices, pulling some of the miners lower.

sensex trading lower. the indian rupee tag. heightening the prospects, of course, for some sort of central bank intervention when it comes to the currency. overall, it's a negative session, ross. >> thanks christine. we have the first quarter sales. thanks to strength in asia, new business profit in the region jumping 22%. speaking exclusively to us earlier, he's pretty optimistic as well about further growth in the sfleegs we have made no secret of our ambitions in asia. we want to grow in asia. it's profitable growth. it's sustainable growth, quality growth. all resales are regular premium which means that people pay every month on their policies, and that's very good for our business. >> he also said he was slightly more optimistic about sovereignty and wouldn't relate

whether they would keep their headquarters in the uk or not. sainbury up. they were optimistic. investors will begin to recognize how well the company is doing. >> over the last 12 months it's been disappointing but over the last three months it's been encouraging. >> there's been a hike in russian tax but the firm is sticking by its firm forecast. the stock up nearly 4%. the ceo of the business mr. rasmussen was fairly optimistic. he said the football season this summer would help boost the numbers. >> not only short term. it's as much long term building brand equity. but at the same time if you have all the right countries qualifying, if you have great weather in june, sunny weather, it can be a significant uplift

to the bottom line. allianz down marginally. first quarter profit up nearly 6 60%. the exposure was pretty well contained. germany's number one utility. boosted by a strong performance in its energy trading and renewables. the stock off 1.6%. lanxess up over 3%. a chemical company. reported 14.6% rise in first quarter ebb ta. results hit by weak trading but the stock trading up. for more patricia's with us in frankfort. hi, patricia. >> hi, there. the story that seems to be of interest, investors. one thing is the actual number. the other thing, are they work on their capital ratios. yes, they do, yes, they did.

and the ratio increased to over 11.3%. also no more exposure to greece, no more exposure to them when it comes to sovereign debt. getting out of greece cost them 17 million euros. however, they see 2012 numbers and guide amounts confirmed and also solid operating profits for the second quarter of 2012. so that's a positive story if you want to see the positive part of the story of commerzbank. lanxess, an absolute outperformer. lanxess has really beat expectations. the most important thing is, yes, on one hand we have higher prices. on the other hand you have pricing power. if you've got great product in great market and you have cutting edge technology. we spoke to the ceo early already on and they look at really good development. allianz. they gave us a little bit of a glimpse in terms of their preliminary numbers. the details will be due on the 15th of may.

here, again, the numbers beating expectations. revenues over 30%. it should top 2.3 billion. and the sovereignty ratio is better than the end of last year. that's the bottom line at allianz. and e.on is dispiemting in terms of trade. it's the biggest loser down 1.7% despite revenue big time. ebita, ebit, in line with expectations. the debt increased a little bit. back to you. >> all right, thanks so more fuch that, patricia. in the meantime, still to come on the show, the stakes are high. how is the vegas strip fending off destinations? place your bets. coming up next.

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just a reminder. we have the italian tax police over there doing a search. the search is linked to an investigation of a possible market manipulation. the stock, as you can see, down over 4% since the announcement of that investigation earlier this morning. jackie. well, disney's second quarter profits rose 21%, beating forecasts.

now, the results were boosted by a strong performance from its cable channels like espn and also theme parks. revenue rose 10%. the studio suffered from the flap of "john carter." "the avengers" broke box office records in the u.s. they're working on a second. >> we see tremendous improvement in the products and games for the "the avengers." it was done by a great crew of filmmakers at marvel and its effect will be prolonged. we saw disney rise 1.6% in the after hours in the states. in frankfurt it's up. meantime gaming company sans china said profits rose in first

quarter. sans china, which is a subsidiary of u.s.-based las vegas sands operates three casinos in macaw, which is the only area where china is legal. they're bringing it back to profit after the company reportedly fell close into bankruptcy about three years ago. but how can the world-famous strip lure visitors back? that is a big question. more on that we're going to have after the break. ter the break. >

good morning. welcome to the show. the headlines around the globe. disney, the happiest place on earth. the company has big news about its new box office smash, "the avengers." prudential beat sales. the ceo tells us exclusively the firm is positioned for long-term growth in asia. and watch out, g.m. toyota aiming to reclaim its position as the world's top awer to makers as the first quarter profits blow past estimates. great to have you here on "worldwide exchange." if you're just joining us, let's go ahead and take look at the u.s. futures and see how we're setting up for trade on wall street at this very early hour.

looking like a lower open, the dow could be down by 72, theed in dak lower by 19, and the s&p 500 lower by 10. this after we saw a lower session yesterday, but we did regain some ground, recovering half of our losses, more than half, in fact, of our losses yesterday. of course, that political uncertainty in greece still making markets here in the united states very edgy. the dow closing under 76, under 13,000. we saw as a sector, consumer discretionaries lagging for the day, down 1.25%. but important to note, still up 13.6% on the year. also we watched gold prices briefly below 1,600 as the dollar streblt was weighing on going and other commodities. how is it in europe, ross? >> heavy losses yesterday. the footstse 100 closed last ni. down another quarter percent this morning. up a quarter percent for germany. remember we had skborts hitting record levels. cac 40 down a quarter percent

after closing down nearly 3%. the ibex down 2.25% as well. we'll keep an eye on bond spreads and yields as well. pretty much down on record lows at the moment. the italian ten-year has risen in yield to 571. spanish yield back over the 6% mark this morning. keep your eye on that. gilt, the benefit of risk aversion. also down in contract lows and near rod record lows as well. below 1.94%. the spanish banks will need to raise an additional $35 billion as part of a recapitalization plan which the government will outline on friday. this is according to reuter sources. it comes on top of the $54 billion that the lenders have already raised to shore up the balance sheets. the spanish government and central bank will also ask financials to increase their provisions on approximately 140 billion euros worth of property

loans to 30% from 7%. and meanwhile over in germany, the international monetary fund is urging germany to do more to solve europe's debt crisis. in remarks made during an annual survey, the imf said the lack of decisive action by germany has actually made the crisis worse. imf also said that once the germany economy mail be headed for recovery, it still faces substantial risks related to the debt crisis. well, here in the u.s., ross, it was a pretty bumpy ride for the u.s. markets yesterday. europe's debt crisis, of course, continuing to generate major turn lens for the investor. the dow closing down for a fifth straight session and had been down as much as 250 points earlier in this morning. joining us now is philip silverman. he's the manager of kingsview management and our guest host, of course, george goncalvez. you still think that the market has come a little bit too far

too fast. do you think we're due for a correction at this point, but large by based on how we're valuing companies, right? >> yeah, absolutely. there's a general argument that the stocks are undervaluedsed on a p.e. multiple, which tends to be a forward-looking p.e. people are -- what's not being taken into consideration is we're seeing profit margins at -- you know, in excess of 50%. people aren't taking into consideration when they're projecting out far into the future these elevated profit margins that e we've seen recently. so you've got to kind of look at the models and see where we could potentially go. >> so historically is really the way to look at it. >> absolutely. you need to take a look at a p.e., for example, like a schiller p.e. where you're adjusting for a long-term profit

margin so that over time -- when you put an elevated profit margin in today and project that out many years, because the value -- the valuation is based on the present value of all the future cash flows going way out, it throws your whole valuation method out of whack, and the wall street tends to like the forward-looking p.e. >> i was going to say. isn't that how we value companies? >> yes, it snies but that's part of the problem. >> that's part of the problem. if you look back historically coming out of very difficult periods. p.e.s tend to get a lot lower than they did in 2009 and they bounced back relatively quickly because profit margins have been so high. but we do not expect them to stay -- >> philip, we talked about this last week. richard cookson from city private bank pointed this out about the profit margins, how big they were and they were unsustainable. the thing is the time frame from which they can be above the mean

because for profit margins to shrink, it would suggest you're going have to need employees to be able to regain their share of gdp. and with the jobless market at the moment, that may not happen for some time. i'm sure you're right to point this out but it doesn't mean they can't be sustained at these levels for quite a few years yet. >> oh, absolutely, absolutely. one thing we've seen in the markets is that elevated levels, whether it's prices in some sort of a bubble or profit margins can stay high longer than you might think. but when you're taking a look at p.e. and you're investing capital at these levels, you need to understand that over the long term, if you're investing now, you're going to -- you're going to see -- you could see quite a bit of dip from here. and so to say maybe they'll come down in a year from now or two years from now, it's great to think you're going to get out of the way before they start to come down. but i'm not really sure that that's realistic. >> i want to change gears for a second and move on to the

commodity space. your neutral, gold, falling through the 16 level. we see the strength in the dollar. where do you see the commodities going from here? >> i think temporarily, there's going to fw quite a bit of pressure on them because the dollar's coming up quite a bit and there's so much tension in europe. with gold, i do believe that gold still has more to run on the upside going out -- looking out a few years. based on the extreme amount of fiscal monetary stimulus that we've seen. and though i'm not worried about inflation in the next year or so, looking out a little bit further, there's going to be significant inflationary factor. gold is going to be place where investors are going to get a stored value. and think that that play is not over yet. you can't expect that it's going go up straight to the sky, you know, for ten years. but i believe we're still in the midst of a long-term trend in gold. >> i want to bring george in on that. your own views of sort of the

inflation trend, looking a little bit further out. >> so, i mean, the one thing i guess we've got to thing about is what is the real store value, what are real assets, and i agree with phil in the sense that markets can stay dislocated. you don't have to look at the bond market. that remains extremely dislocated and that is in many ways forcing money into the equity markets and creating this value scale that phil's mentioning, but there's only so many places where you can get investment hedges. the tips market has been, you know, on fire and doing phenomenally well. you have to pay the u.s. government to buy tips. it's a negative rate. you know, the question then goes back to could, you know, equities in high quality companies be, you know, a place for store value, and maybe what we're in the midst of right now is a differentiation of asset classes. we've had always this risk on, risk off. maybe core rye lagss are going to break down and shift through to find auto where there's true

value. >> we're going have to leave it for a moment. we'll come back to other topics shortly. meantime, moving on, we're taking a look at games companying saying net profit rhodes by 6.4% in the first fir quarter. sands china, which is a subsidiary of u.s.-based las vegas sands operates three casinos in macau which is the only place where gambling is legal. after the company reportedly fell close into bankruptcy three years ago. but how can the world-famous vegas strip lure customers back. h here to talk about it is chad with morningstar. can you answer that question for me? obviously we're seeing a lot of gaming demand abroad, but here in the u.s., how is the vegas picture looking? >> i think the vegas picture,

you're seeing a modest recovery in vegas, so we're likely to see 5% growth in gaming revenue this year. you contrast that to macau which is growing at 20%. it's a cyclical industry at this point. it's saturated. there's not the growth potential there once was. you contrast that with china. you've only got 35 casinos combined in just the tiny region of macau. >> let's talk about the story for some those watching who may not be familiar with that. break down for me what else is strong about the picture there, why people are flocking to macau and does it have to do with the fact there are so few casinos in such a big population? >> yeah. a lot of it is supply and

demand. so basically you have the sands ka tie central casino open in april. there's not going be any new casinos opening in china until most likely 2016. so you're going to continue to see this huge influx of new gamblers and also gamblers betting in larger amounts coming to macau to gamble. that's going to be increase in revenue and most importantly capital for the casinos. and the growth drivers are much stronger in china, much faster growth in wages. you've got tens of millions of people going into the middle class and then you've about got this new class of high net worth individuals that are really taking to gambling in a way that americans haven't traditionally. >> chad, hi.

this is christine here. i mean we talked about las vegas versus macau. what about las vegas versus singapore? any reaction on that? >> we like the singapore market more than the china market. the reason for that is singapore, you have lower gaming taxes, much lower gaming taxes than in macau and the growth opportunities are similar in singapore than macau. and then the big difference is it's a duopoly. we think, you know, asia just overall offers a lot more opportunities for investors in terms of stocks to invest in versus the u.s. operators. >> to what extent, chad, will singapore cannibalize business from macau? >> you've seen very little

cannibalization. you've seen a high extent of gamblers going to singapore. you haven't seen much effect at all on china gambling revenue. that was a big concern at the start, but singapore, you know, last year, the china market grew 4%. so singapore just didn't have that much impath ct on the chin market. >> chad mollman from morningstar. very interesting. that's it for me. eibel back tomorrow with moving markets. jackie, take it away. >> all right, christine. see you tomorrow. thanks to chad as well. still to come on the show, though, disney reports better than expected earnings and says there's a big future for its new box office smash, "the avenge jers." we're going to break down the company's results coming up next. we're going to break down the company's results coming up next.

♪ why do you whisper, green grass? ♪ [ all ] shh! ♪ why tell the trees what ain't so? ♪ [ male announcer ] dow solutions use vibration reduction technology to help reduce track noise so trains move quieter through urban areas all over the world. together, the elements of science and the human element can solve anything. [ all ] shh! [ male announcer ] solutionism. the new optimism.

a living breathing intelligence bringing people together to bring new ideas to life. look. it's so simple. [ male announcer ] in here, the right minds from inside and outside the company come together to work on an idea. adding to it from the road, improving it in the cloud all in real time. good idea. ♪ it's the at&t network -- providing new ways to work together, so business works better. ♪ disney's second quarter profits beat forecast. they boosted strong performance from its cable chanls from espn and also from the theme parks. revenues rose 10%. that helped offset the loss from disney's movie studio, "john k r

carver." "the avengers" is working on a second one. >> we see a tremendous increase in consumer products and gaming abilities. we have the opportunity to take a fine film into such much bigger for the company and its effect will be more prolonged. >> it looks like in terms of the movie segment, we had a problem with "john carver." still seeing nice growth at disney, yes? >> yeah, definitely. i mean it was an impressive quarter. bob iger earned the mouse ears or a "i survived john carter"

t-shirt. p it was a strong quarter. >> even though we saw the weakness, analysts generally thinking that's okay. >> yeah. that's fine. mine there's five main operating segments at disnedisney. the only one that would be a problem is espn. it's nearly half of the revenue. this past quarter was 89% of the operating profits so it's definitely important for the cable business and espn in particular to be doing well and that's showing no signs of dropping. everything was a yes and kind of quarter where you go, yes, the

park went up 10%. on rating income went up 50%. you have the carsland opening up and a fantasyland expansion opening up. all disney's divisions have something to look forward to. >> well, and a 10% jump in the theme parks think is important to touch on as well. as you mentioned, new parks coming down the pike. but looking to the broader company and seeing them looking to spend, i think that's what a lot of people were looking for when they looked at that segment, correct? >> absolutely. and i mean the only one park that went down in attendance was disneyland paris, which is understandable given the situation in europe right now. but you do have a case where back here, back in the united states, the theme parks, the attendance was up 7% and the per capita pending was 5% on top of that. so you have this 12% gain in overall theme parks, attendance, and people are spending more. so disney is able to raise their prices and people are still

coming in large numbers. it's very impressive, especially when a lot of people are still unsure of the economic recovery. >> rick, will that spill over to other theme parks? there are some good universal attractions as well, as you know. >> yes. obviously with the whole theme park, disney is competing with universal. and ironically with marvel, they're really big but they can't put out big rides because of universal in florida they have a marvel rights. they can open it up in california, but not florida. you have a case where you don't want to see john carter ride. you'd rather see thor or iron man. disney did say during the call there would be marvel rides in the works. there's just nothing official to announce at this time. >> all right, rick. thank you so much. we're going to have to leave it there. rick munarriz. he's the senior analyst at the

motley. meantime patti hart won't stand for re-election. she wants to focus more on game technology. yahoo!'s board has confirmed it's created a special board. last week hedge fund manager dan loeb pointed out that. he's fighting to make changes on the back court. yahoo! and igt, taking a look at prices right now, looking like we're higher and a little lower on igt, down about 0.8%. ross. before that loeb was the president of paypal. earlier we spoke with the ceo of paypal and we talked about what he felt were scott's problems. >> scott did a very good job at pay pall, a good leader. and as a fellow ceo, i'm very

supportive of scott and i hope it resolves its in a way that everyone can get back to work. and bank of america holds its annual meeting in charlotte, north carolina today. they're voting on several proxy issues and ceo brian moynihan is expected to get the thumbs up on his pay package. sparks may fly outside b of a's headquarters. they'll be looking at their situation where it will give police more power to search near a major gathering. and green mountain coffee roasters shake up things as well. demoting lead director william davis. now, green mountain's stock fell sharply after disappointing earnings last week, forcing the men to sell several shares. their stock sales came when insider trading was prohibiting.

both will remain on the board. stiller tells cnbc he's shocked by the move. green mountain shares fell 3% in the after hours session. in frankfurt they're higher by 0.8% at 20.05%. coming up we're going to take a look at the trading day on wall street. plus the left leader will form a coalition government today. all of those details after the break. break. are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need.

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we're continuing to see record lows for european bond yields this morning. we had -- this is on the back of pretty good auctions which had a five-year bubble auction which was cover despite the average yield was around 5.4%.

that sends record lows this morning and we're pretty much on that at the moment. 1.53% is where we stand on that. on the other end, you see gilt yields thochl is are fresh yields from roit ter's. we had, again, a very good cover for 30-year auction. 2042 auction. 2.2% coverage on that. gilt record down. we have a trade win below 1 ppt 9%. this is contingency yields in lit and spain. yielded a little higher in spain. you'll notice back over 6%. we'll get george's views on that in just a second. this all comes as it's said greece will leave the eurozone by next year and comments made to cnbc, roubini has always said the ongoing political term in europe is a slow motion train wreck that will eventually break up with two or three members over the next few years.

those comes as alexis tsipras has leekted to form a coalition government today. carolyn is in athens with more. carolyn, how many more daynes has he got to try to cover that coalition together? >> the parties have until may 17 to try to form a coalition government. alexis tsipras has a while to go. the third party said he was willing to form a minority government. but, again, the chances of mr. tsipras or anyone else for that matter to be able to form a coalition government which will actually be a stable one, those chances are receding massively. that's because, remember, the main sticking point is mr. tsipras' demand for the two parties' new democracy to cancel the second bailout program altogether along with all the austerity measures that go along

with it. and this is something that new democracy are simply not willing to do. they know what's at stake here, and that is greece's membership in the eurozone. but, ross, let's just continue this thought experiment. how bad would it be for greece if it was no longer part of the eurozone? well, ubs put out an interesting note. it said that grease would lose half of its gdp, its new currency would drop by some 50%. so for greece, it would be quite catastrophic. >> yeah. and that's the point, isn't it? okay, carolyn. thanks indeed for that. as we said, the bank now suspended. this follows a search being conducted by italian tax police linched to an investigation into a possible market manipulation, so that stock now suspended. jackie. looking ahead at the trading day on wall street, march retail

is out. meantime aol and macy's reporting results after the opening bell. after the close we're going to hear from cisco, activision blizzard and prooming. ceo john chambers will be on "closing bell." that's at 4:00 p.m. eastern time. be sure to tune in for that. still with us, philip silverman and john goncalvez. we've rebounded by the end of the day. what's going on with the momentum that we're seeing and how do we make that turn every day? >> from our perspective, europe starts to close and the markets recover in the afternoon. we'll be watching for that person. the interesting thing is if it doesn't happen, lou will the trading react snpz. we'll be watching it very closely. >> and, george, just to get your reaction, two auctions today.

bund offering nothing so far or offering half a percent. record lows in bund yields am 30-year gilt auction, really good cover for that. 2 president 2.2. what's this telling us when you're getting nothing for your money and driving yields to record lows? >> look. i think that we're at a very high point in the negativity. the fact that we're seeing these auctions clear without a problem tells you that the fear is running rampant in the marketplace and that, you know, europe really continues to be the cauldron of negativity and that will continue to boil for many years. but when you have periods of extreme moves like now, i agree with phil. let's see what happens around noon, 1k. we have a stretchry auction. let's see if the market can take that down in the same a capacity as the europe markets did. europe has really become the ball and chain for all global markets, bonds and stocks.

so once europe closes, if we don't get that kind of snapback, that's a really telling story. >> we're going to leave it there. thank you, gentlemen, so much. with us this morning, george goncalvez and also philip silverman from kingsview. that's it for today's show. i'm jackie de-angeles here in the united states. >> and ross westgate here in europe. up next, "squawk box" will be up next. in the meantime we hope whatever happens you have a profitable day. so from jackie and myself, good-bye. we'll be back again same time tomorrow. they have names like idle time books and smash records

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disney's earnings beat the street despite the climb at the box office. they take a genome offer directly to shareholders. and in political news a well known u.s. senator is defeated in his party's primary. he's been there 35 years. indiana rupp richard lugar forced out by a tea party-backed opponent. wednesday, may 9th. "squawk box" begins right now. zbroopd morning, everybody. we